EV Two-Wheelers To See 100 Per Cent Penetration In Indian Market By FY27, Says NITI Aayog Report
As per the report, the projected sale of EV two-wheelers in FY31 will be 220.15 lakh units
A report released by government tank NITI Aayog and technology information, forecasting and assessment council (TIFAC) titled 'Forecasting Penetration of Electric Two-Wheelers in India', on June 28, optimistically forecasts 100 per cent penetration of electric two-wheelers in the Indian market by FY26-27. The report throws light into the required infrastructure, manufacturing capability, policies and technology-development priorities in the sector.
As per the report, "In the optimistic scenario, projected sale in FY31 is 220.15 lakh units. On the other hand, in the challenged diffusion scenario, the sale is 9.85 lakh units and 7.80 lakh units in the financial years 2024 and 2031 respectively."
The report also added, "While analyzing market penetration of electric two-wheelers, it has been considered that all the charging points will not be dedicated to two-wheelers only and utilization of charging points will also not be 100 per cent. The utilization is expected to increase over the years. Considering these facts, the total requirement of charging points in FY31 is projected to vary from 29639 units in challenged diffusion scenario to 774746 units in optimistic scenario."
During the launch of the report, Amitabh Kant, CEO of NITI Aayog, said in a news report quoted as saying, "This report provides a much-needed tool to the industry, researchers, academicians and policy makers to analyze and respond to various scenarios. It can be replicated easily in other segments too, such as four-wheelers, without any hassle."
Considering the government's initiatives for the adoption of EV, the report said that, "At a certain point of time in future, there may be an appropriate ecosystem for enforcement of a regulation towards electric mobility or other clean transport options. But the present analysis depicts that there are plenty of opportunities for accelerating adoption of electric vehicles through technological improvements and other interventions."
As per market analysis, the penetration of EV two-wheeler happens mainly based on three factors such as, they are demand incentives, cost of battery and vehicle performance in terms of both range and power. The report said that all three factors have a positive bearing on the EV mobility adoption in the country. It also added that recent petrol hike and positive mindset about electric vehicles could also play a significant role in the switch to EVs.